2013 (9) TMI 590

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....f of the appellant would submit that the adjudicating authority has erred in coming to such conclusion. It is his submission that the appellant herein had entered into a Works Contract with M/s Essar Oil (India) Limited for construction of refinery expansion project and had received an advance amount from them. It is his submission that such an amount was received prior to 01.06.2007. It is his submission the execution of the said project was taken up and completed by the appellant after 01.06.2007. It is his submission that the appellant herein, had taken registration from the Service Tax authority under the category of works contract for such contract executed by them as agreed to discharge the Service Tax liability on composition basis @....

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....Turbotech Precision Engg. Pvt.Ltd. (supra), Revenue took up the matter in appeal before the Hon'ble High Court of Karnataka and Hon'ble High Court vide their judgment has dismissed the appeal filed by the Department and is reported at 2010 (18) STR 545 (Kar.) It is his submission the amount of Service Tax liability, even if any is payable, the dispute would be revenue neutral as Service Tax paid will be available as credit to M/s Essar Oil Limited, who are the sister of the appellant. For this proposition, he would rely upon the decision of Honble Supreme Court in the case of Coca Cola 2007 (213) ELT 490 and the decision of the Tribunal in the case of Larsen & Toubro Ltd. 2008 (227) ELT 65 (Tri). It is his submission that on an identical i....

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....tion and contract for construction of refineries. It is his submission that all the 3 contracts are to be considered as composite contract and the value needs to be considered for the purpose of discharge of Service Tax liability while the appellant has discharged the Service Tax liability only on contract for labour for erection and contract for construction. It is his submission that in the appellants own case, Income Tax Appellate Tribunal at Rajkot Bench, has held that these contracts cannot be independent contracts. It is his submission that the appellant's contract would be covered by the terminology 'turnkey project' including engineering, procurement and construction or commissioning project and hence the appellant's action of vivi....

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....ppellants claim of the project being covered under works contract from 01.06.2007 is bonafide belief carried by the appellant as they had indicated in the return that they have received an amount as an advance for such contract. We also find that there are two views on this issue in as much as the Tribunal in the case of ABB Limited (supra) (wherein one of us was a Member), held the view that Service Tax liability under the works contract will come into effect from 01.06.007 and it cannot be covered in any earlier entries while the decision of the co-ordinate Bench in the case of Alstom Projects India Ltd., takes a different view. We find that when there are two views possible and both the matter being contested before the Hon'ble Apex Cou....